Singapore's Karooooo Q3 adjusted EPS rises 11% yr/yr

Karooooo

21/01/2026 05:33

Overview

Singapore-based digital operations firm reported Q3 adjusted EPS rose 11% yr/yr

Subscription revenue grew 20% yr/yr, driven by increased Cartrack subscribers

Company raised midpoint of FY26 revenue outlook, indicating growth acceleration

Outlook

Cartrack's FY2026 subscription revenue expected between ZAR4,785 mln and ZAR4,900 mln

Cartrack's FY2026 operating profit margin projected between 27% and 30%

Karooooo's FY2026 adjusted EPS expected between ZAR32.50 and ZAR35.50

Result Drivers

SUBSCRIBER GROWTH - Cartrack subscribers increased 16% to 2.57 mln, driving subscription revenue growth

SUBSCRIPTION REVENUE - Subscription revenue rose 20% to ZAR1,239 mln, supported by increased subscriber base

INVESTMENT IMPACT - Strategic investments in sales capacity and acquisitions weighed on short-term profitability

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 EPS
ZAR 8.55


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the it services & consulting peer group is "buy"

Wall Street's median 12-month price target for Karooooo Ltd is $60.00, about 34% above its January 20 closing price of $44.76

The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 26 three months ago

Press Release: ID:nJseU0001a

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)